Business Hilights
Tracking Nigeria's Headline Business News Online

CBN hikes cards maintenance fee from N100 yearly to N600 from this month

Indications have emerged that the Central Bank of Nigeria (CBN) has finally yielded to age long pressure from commercial banks to hike fees charged on debit and credit cards maintenance.

Accordingly, it has announced the hike from N100 a year to N50 per month, totaling N600 yearly.

The new tariff regime takes effect from May 1, 2017, as part of its charges review by banks and other financial institutions in the country.

The “Guide to Charges by Banks and Other Financial Institutions” provides a basis for the application of charges on various products and services offered by the banks and other financial institutions in Nigeria to their customers.

Director of Financial Policy and Regulation Department at the CBN, Mr. Kevin Amugo, said the charges came after extensive consultation with stakeholders even though no bank customer who remains a key stakeholder was contacted.

Though he said “The aim of the guide is to enhance flexibility, transparency and competition in the Nigerian banking industry,” analysts queried how jerking up charges which will be paid by bank customers will achieve will flexibility, transparency and competition in the Nigerian banking industry, rather than impoverishing the account holders.

CBN further noted that “where a charge is stipulated as “negotiable”, banks and other financial institutions are required to draw the attention of customers to their rights to negotiate and the two parties are required to mutually agree on the applicable interest and/or charge via a verifiable means.”